What does a Cilantro Taco Grill franchisee agree to indemnify the Cilantro Taco Grill Indemnitees from?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
yees, and all required insurance policies shall contain a waiver of subrogation in favor of the additional insureds.
- 15.6 Indemnification. TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE AGREES TO EXONERATE AND INDEMNIFY AND HOLD HARMLESS CTG FRANCHISE LLC, CTG IP LLC, AND ANY OF THESE COMPANIES' PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES (COLLECTIVELY REFERRED TO AS THE "CILANTRO TACO GRILL INDEMNITEES"), FROM ALL CLAIMS BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATED TO THE OPERATION, CONDITION, OR ANY PART OF FRANCHISEE'S CILANTRO TACO
GRILL FRANCHISE, THE FRANCHISED BUSINESS, THE PRODUCTS, THE PREMISES, OR ANY ASPECT OF THE REAL ESTATE CONNECTED TO FRANCHISEE'S FRANCHISED BUSINESS, WHETHER CAUSED BY FRANCHISEE, FRANCHISEE'S AGENTS OR EMPLOYEES, OR ARISING FROM FRANCHISEE'S ADVERTISING OR BUSINESS PRACTICES FRANCHISEE AGREES TO PAY FOR ALL THE CILANTRO TACO GRILL INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER. THE CILANTRO TACO GRILL INDEMNITEES SHALL HAVE THE RIGHT TO SELECT AND APPOINT INDEPENDENT COUNSEL TO REPRESENT ANY OF THE CILANTRO TACO GRILL INDEMNITEES IN ANY ACTION OR PROCEEDING COVERED BY THIS INDEMNITY.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, a franchisee agrees to indemnify the Cilantro Taco Grill Indemnitees from claims related to the franchisee's Cilantro Taco Grill franchise. This includes claims arising from the operation, condition, or any aspect of the franchise. It extends to the products sold, the premises, and any real estate connected to the franchise.
The franchisee's responsibility for indemnification covers situations caused by the franchisee, their agents, or employees. It also includes issues stemming from the franchisee's advertising or business practices. The franchisee is responsible for covering all losses and expenses incurred by the Cilantro Taco Grill Indemnitees, including attorney's fees, in connection with any legal actions, suits, proceedings, or inquiries, regardless of whether they result in a judgment or settlement.
The Cilantro Taco Grill Indemnitees have the right to select and appoint their own legal counsel to represent them in any action covered by this indemnification. The franchisee must reimburse the Cilantro Taco Grill Indemnitees for all costs and expenses as they are incurred. This means that a franchisee could face significant financial burdens if a claim arises from their business operations, requiring them to cover potentially substantial legal costs and damages.